Repairs like fixing faucets can be deducted in the year they are performed, while improvements like insulation must be capitalized and depreciated over time.

The asking rent growth rate decline of 2.7% observed over the past 12 months compares unfavorably to the long-term performance of the metro, and rent growth deceleration has been shared broadly among the Los Angeles metropolitan area's thirty-seven apartment submarkets.Competitive Inventory, Household Formations, AbsorptionThe first quarter added 6,770 net new households to the Los Angeles MSA.

Maybe double check comps and make sure the marketing is performing well.

@Farzan SetayeshNot a local investor, but here is a data driven look at the market conditions in McAllen TexasTwo of the most important market performance indicators, population and median home values, have been increasing steadily for the past decade   Rents have followed a similar trend The chart to the right shows median household incomes over time, which have also been increasing. 

-Sauna-Hot Tub-Patio/courtyard (large cement tiles on crushed bluestone with lighting, natural gas line to bbq)-Secondary patio off primary suite-Losing sq feet in the primary bedroom to enlarge the bathroom-High grade cabinets-Appliances with cabinet fronts-High end appliances (Viking/Miele instead of GE Cafe)-Outdoor shower (teak box walls with a dry well beneath the footprint)-Wiring for Cat6 to every room-Wiring for surround speakers (or including the speakers that are built into the walls)-Sonos whole-home audio system-Hardwired cameras (with on-site storage) to the exterior of the house-Smart features: thermostats are a given, but how about light fixtures, switches, aromatherapy, fans ... anything else?

If it requires me to be there to make it perform for cash flow then it is a job.

Thanks,BrandonThe only way I would trust those projected returns is if they have a previous performance record to back it up.

That can be discovered by looking at performance of Airbnbs in the area.

Is there a market where in general you can purchase, perform the rehab value add, and extract investment via high LTV cash out refi without having large negative cash flow?

Here is a recent post of mine that addresses your questions:  Cost Segregation - The Basics (biggerpockets.com)You can perform a cost segregation anytime before you file your tax return in April, 2025.